Communities Minister Gordon Lyons has confirmed the start of a Pre Market Engagement exercise regarding the future development of the Irish Street location in Downpatrick.
The initiative will proceed as a joint venture between the Department and Newry, Mourne and Down District Council.
Officials state that advancing this project would improve the area's attractiveness for visitors, residents and businesses.
The goal is to stimulate fresh investment while promoting regeneration and long-term sustainable expansion within the town.
To facilitate progress, the Department and the local authority intend to provide a capital grant of up to £5.2 million.
This funding is designed to assist in delivering a high-quality development scheme at the site.
Councillor Glyn Hanna, who chairs Newry, Mourne and Down District Council, has been identified as a key partner in the effort.
Further information regarding the engagement process will be available through the eTendersNI Portal.